Nestlé has reported that its sales for 2012 were up 10.2%, to CHF 92.2 billion. Organic growth was 5.9%, building on the strong growth of recent years, and was composed of 3.1% real internal growth and 2.8% pricing.
The Group’s trading operating profit was CHF 14.0 billion, up CHF 1.5 billion or 11.8%. The trading operating profit margin was 15.2%, up 20 basis points, +10 basis points in constant currencies.
The company noted that it put more marketing support behind its brands, with consumer-facing spend increasing by 8%.
Net profit was up CHF 1.1 billion to CHF 10.6 billion, and earnings per share were up 12.2% reported to CHF 3.33. Underlying earnings per share in constant currencies were up 7.5%.
The Nestlé Group’s growth was broad-based across all categories and geographies, with 5.9% organic growth in the Americas, 2.4% in Europe and 10.3% in Asia, Oceania and Africa.
In spite of the challenging trading environment in the developed world, Nestlé said that its innovation in products, systems and routes to market delivered organic growth of 2.5%. In emerging markets it grew 11%, achieving sales of CHF 39.3 billion.
“In 2012 we delivered on our commitment: a good, broad-based performance building upon the profitable growth achieved consistently over previous years,” said Paul Bulcke, Nestlé CEO. “All our businesses, both in developed and in emerging markets contributed. Our nutrition, health and wellness agenda continued to bring enhanced benefits for consumers, greater brand differentiation in the market place and increased value for shareholders.”
“With creativity and innovation, our people laid the foundations for future growth,” he continued. “We increased the support behind our brands. We further strengthened our global R&D network with new facilities in India and China. We developed new capabilities for Nestlé Health Science and acquired Wyeth Nutrition. We invested responsibly and sustainably, expanding our manufacturing footprint, while continuing to reduce the environmental impact of our business. Despite the many challenges 2013 will no doubt bring, we expect to deliver the Nestlé Model of organic growth between 5% and 6% as well as an improved margin and underlying earnings per share in constant currencies.”
